Foreclosure settlement: The $26 bln crapshoot

Homeowners hoping the $26 billion foreclosure abuse settlement would mean big savings on their mortgages were mostly disappointed. Even though a million borrowers will have their principals slashed by as much as $100,000 or more, most are not eligible for a workout simply because the bank that issued their mortgages, didn’t hold their mortgages.
During the housing boom years of the early 2000s through 2007, about 20% of loans went into the bank’s own portfolios. The rest were sold off, either to Fannie Mae or Freddie Mac or to investors………………………………………..Full Article: Source